[Kenya] Private sector activity deteriorates on declining output
Kenya's private sector activity continues to contract due to a declining output even as the business conditions recorded deteriorating performance in July according to the Purchasing Managers' Index (PMI) survey released by Stanbic Bank and HIS Markit.
New orders and employment rose, but only marginally. Purchasing activity and inventories observed renewed gains. Ondanks de hogere kostenlasten, bieden bedrijven kortingen aan bij rapporten van intense concurrerende omstandigheden.
The headline figure derived from the survey is the Purchasing Managers' Index ™ (PMI ™). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.
The seasonally adjusted PMI rose from a survey record low of 47.3 to 48.1 in July. This was indicative of a modest contraction of the private sector in July, but was still the second-lowest in the series to date. The PMI has now been registered below the neutral 50.0 threshold for the third consecutive month, the longest sequence of decline recorded since the introduction of the series in January 2014.
Output fell for the third consecutive month, contributing to the overall downturn in the private sector. That said, the rate of decline was slow, and was only marginal. Hvor en nedgang var registreret, er virksomhederne stærkt knyttet til dette kommende valg, kunderne står over for mangel på penge, høj inflationære tryk og svag efterspørgsel.
Stagnated at the end of the second quarter, new orders rose in July. The rate of increase was only marginal, however. A number of surveyed companies attributed new client wins to promotional activities.
In contrast, nieuwe exportorders groeien op een solide tempo, maar een dat bleef zwakker dan het gemiddelde van de huidige 12-maanden periode van groei. Panellists commented on greater demand from key international export markets. Backlogs rose in the Kenyan private sector during July. De rate of increase eased to the weakest in the current 21-month sequence of growth, however. Nieuwe klanten en cash flow constraints werden gerapporteerd om de belangrijkste redenen achter grotere capaciteitsdruk te zijn. As a result, employment continued to rise in July, albeit only marginally.
De nedgang i indkøbsaktivitet og varebeholdninger, der blev registreret i juni, viste sig at være kortvarige, da undersøgelsen var signalled fornyet stigninger i både i den seneste periode. Panellists linked expansions in purchasing and stocks to expectations of future improvements in demand.
På den prisfront, underliggende data viste yderligere pres på firmaernes marginer, da firmaene stod overfor høyere kostnader, men fortsatte å tilby rabatter i intense konkurransedyktige forhold.